SCHEDULES
SCHEDULE 19Stamp duty land tax: commencement and transitional provisions
Introduction
I11
1
Subject to the provisions of this Schedule, the provisions of this Part come into force on the passing of this Act.
2
The following provisions have effect as regards what transactions are SDLT transactions, that is, are chargeable or notifiable or are transactions in relation to which section 79 (registration etc) applies.
3
Nothing in this Schedule shall be read as meaning that other transactions, whether effected before or after the passing of this Act, are to be disregarded in applying the provisions of this Part.
The implementation date
I22
1
A transaction is not an SDLT transaction unless the effective date of the transaction is on or after the implementation date.
2
In this Part “the implementation date” means the date appointed by Treasury order as the implementation date for the purposes of stamp duty land tax.
Contract entered into before first relevant date
I33
1
Subject to the following provisions of this paragraph, a transaction is not an SDLT transaction if it is effected in pursuance of a contract entered into before the first relevant date.
2
The “first relevant date” is the day after the passing of this Act.
3
The exclusion of transactions effected in pursuance of contracts entered into before the first relevant date does not apply—
a
if there is any variation of the contract or assignment of rights under the contract on or after that date;
b
if the transaction is effected in consequence of the exercise after that date of any option, right of pre-emption or similar right;
F9c
if on or after that date there is an assignment, subsale or other transaction (relating to the whole or part of the subject-matter of the contract) as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance to him.
Contract substantially performed before implementation date
I44
1
This paragraph applies where a transaction—
a
is completed on or after the implementation date,
b
is effected in pursuance of a contract entered into and substantially performed before that date, and
c
is not excluded from being an SDLT transaction by paragraph 3.
2
The transaction is not an SDLT transaction if the contract was substantially performed before the first relevant date.
3
In any other case, the fact that the contract was substantially performed before the implementation date does not affect the matter.
Accordingly, the effective date of the transaction is the date of completion.
F6Contracts substantially performed after implementation date
4A
Where—
a
a transaction is effected in pursuance of a contract entered into before the first relevant date,
b
the contract is substantially performed, without having been completed, after the implementation date, and
c
there is subsequently an event within paragraph 3(3) by virtue of which the transaction is an SDLT transaction,
the effective date of the transaction shall be taken to be the date of the event referred to in paragraph (c) (and not the date of substantial performance).
Application of provisions in case of transfer of rights
4B
1
This paragraph applies where section 44 (contract and conveyance) has effect in accordance with section 45 (effect of transfer of rights).
2
Any reference in paragraph 3, 4 or 4A to the date when a contract was entered into (or made) shall be read, in relation to a contract deemed to exist by virtue of section 45(3) (deemed secondary contract with transferee), as a reference to the date of the assignment, subsale or other transaction in question.
Credit for ad valorem stamp duty paid
I55
1
Where a transaction chargeable to stamp duty land tax is effected in pursuance of a contract entered into before the implementation date, any ad valorem stamp duty paid on the contract shall go to reduce the amount of tax payable (but not so as to give rise to any repayment).
2
Where the application or operation of any exemption or relief from stamp duty land tax turns on whether tax was paid or payable in respect of an earlier transaction, that requirement is treated as met if ad valorem stamp duty was paid or (as the case may be) payable in respect of the instrument by which that transaction was effected.
Effect for stamp duty purposes of stamp duty land tax being paid or chargeable
I66
F81
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
The references in section 111(1)(c) of, and paragraph 4(3) of Schedule 34 to, the Finance Act 2002 (c. 23) (which relate to the circumstances in which stamp duty group relief is withdrawn) to a transfer at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which group relief was not claimed shall be read, on or after the implementation date, as including a reference to a transfer at market value by a chargeable transaction in respect of which relief under Part 1 of Schedule 7 to this Act was available but was not claimed.
3
The references in section 113(1)(c) of, and in paragraph 3(3) or 4(3) of Schedule 35 to, the Finance Act 2002 (which relate to the circumstances in which stamp duty company acquisitions relief is withdrawn) to a transfer at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which section 76 relief was not claimed shall be read, on or after the implementation date, as including a reference to a transfer at market value by a chargeable transaction on which stamp duty land tax was chargeable and in respect of which relief under Part 2 of Schedule 7 to this Act was available but was not claimed.
F5Stamping of contract where transaction on completion subject to stamp duty land tax
Sch. 19 para. 7A and cross-heading inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 25(1) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)
7A
1
This paragraph applies where—
a
a contract that apart from paragraph 7 of Schedule 13 to the Finance Act 1999 (contracts chargeable as conveyances on sale) would not be chargeable with stamp duty is entered into before the implementation date,
b
a conveyance made in conformity with the contract is effected on or after the implementation date, and
c
the transaction effected on completion is an SDLT transaction or would be but for an exemption or relief from stamp duty land tax.
2
If in those circumstances the contract is presented for stamping together with a Revenue certificate as to compliance with the provisions of this Part of this Act in relation to the transaction effected on completion—
a
the payment of stamp duty land tax on that transaction or, as the case may be, the fact that no such tax was payable shall be denoted on the contract by a particular stamp, and
b
the contract shall be deemed thereupon to be duly stamped.
3
In this paragraph “conveyance” includes any instrument.
F4Stamping of agreement for lease where grant of lease subject to stamp duty land tax
Sch. 19 para. 8 heading substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 25(2)(a) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)
I88
1
F2This paragraph applies where—
a
an agreement for a lease is entered into before the implementation date,
b
a lease giving effect to the agreement is executed on or after that date, and
c
the transaction effected on completion is an SDLT transaction or would be but for an exemption or relief from stamp duty land tax.
F32
If in those circumstances the agreement is presented for stamping together with a Revenue certificate as to compliance with the provisions of this Part of this Act in relation to the grant of the lease—
a
the payment of stamp duty land tax in respect of the grant of the lease or, as the case may be, the fact that no such tax was payable shall be denoted on the agreement by a particular stamp, and
b
the agreement shall be deemed thereupon to be duly stamped.
3
For the purposes of this paragraph a lease gives effect to an agreement if the lease either is in conformity with the agreement or relates to substantially the same property and term as the agreement.
4
References in this paragraph to an agreement for a lease include missives of let in Scotland.
Exercise of option or right of pre-emption acquired before implementation date
I99
1
This paragraph applies where—
a
an option binding the grantor to enter into a land transaction, or
b
a right of pre-emption preventing the grantor from entering into, or restricting the right of the grantor to enter into, a land transaction,
is acquired before the implementation date and exercised on or after that date.
2
Where the option or right was acquired on or after 17th April 2003, any consideration for the acquisition is treated as part of the chargeable consideration for the transaction resulting from the exercise of the option or right.
3
Where the option or right was varied on or after 17th April 2003 and before the implementation date, any consideration for the variation is treated as part of the chargeable consideration for the transaction resulting from the exercise of the option or right.
4
Whether or not sub-paragraph (2) or (3) applies, the acquisition of the option or right and any variation of the option or right is treated as linked with the land transaction resulting from the exercise of the option or right.
But not so as to require the consideration for the acquisition or variation to be counted twice in determining the rate of tax chargeable on the land transaction resulting from the exercise of the option or right.
5
Where this paragraph applies any ad valorem stamp duty paid on the acquisition or variation of the option or right shall go to reduce the amount of tax payable on the transaction resulting from the exercise of the option or right (but not so as to give rise to any repayment).
Supplementary
I1010
In this Schedule “contract” includes any agreement.
Sch. 19 paras. 4A, 4B and cross-heading inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 24 (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)